YETI Holdings, Inc. reported fourth‑quarter 2025 results that beat consensus estimates, with net sales of $583.7 million, up 7% year‑over‑year, and adjusted net sales of the same amount, a 5% increase. Adjusted earnings per share rose to $0.92, surpassing the consensus estimate of $0.88 by $0.04, a 4.55% beat.
International sales drove the majority of the growth, rising 25% to $146.5 million, while drinkware sales increased 6% to $73.2 million. The Coolers & Equipment segment grew 7% to $192.3 million, a correction from the previously reported 12% figure. These gains reflect strong demand in core product lines and a favorable mix shift toward higher‑margin items.
Gross profit for the quarter reached $340.9 million, or 58.4% of sales, up 4% from the prior year. The margin contraction of 310 basis points was largely attributable to tariff costs, which offset lower product costs and selective price increases. The company’s supply‑chain diversification strategy is expected to reduce tariff exposure to less than 5% of cost of goods sold by year‑end.
Operating income fell 8% to $75.5 million, reflecting a 250‑basis‑point unfavorable impact from higher tariff costs. This decline follows a 14% drop in adjusted operating income to $94.7 million, underscoring the ongoing pressure on profitability from trade‑related expenses.
Full‑year 2025 sales totaled $1.868 billion, a 2% increase from the prior year, while adjusted gross profit reached $1.072 billion, or 57.4% of sales, down 120 basis points from the previous year’s margin. GAAP EPS for the year was $2.03, slightly below the $2.05 reported in 2024, and adjusted EPS fell 9% to $2.48 from $2.73.
Management guided for fiscal year 2026 sales growth of 6% to 8% and adjusted earnings per share of $2.77 to $2.83, a range that falls below the consensus estimate of $2.92. CEO Matt Reintjes said, "Q4 was our strongest quarter of the year as the YETI brand continued to build momentum. We're seeing solid demand, our teams are executing with discipline, and the strategy we've been building over the last few years is showing through in the numbers and outlook." He added, "We have an exceptionally strong team operating with focus and purpose, and a diversified commercial model that has proven powerful and scalable." Reintjes also noted, "We expect full‑year sales growth between 6% and 8%, supported by balanced contributions from both Drinkware and Coolers & Equipment, continued international strength, and a robust innovation cycle."
The market reacted negatively, with the stock falling in pre‑market trading. Investors cited margin compression from tariff costs and the lower-than‑expected FY2026 earnings guidance as primary concerns, outweighing the earnings beat and revenue upside.
YETI’s results underscore the company’s resilience in international markets and its ability to maintain growth in core segments, but the persistent tariff headwinds and a cautious U.S. wholesale environment signal ongoing challenges. The company’s focus on supply‑chain diversification and product innovation positions it to mitigate future tariff exposure and sustain long‑term growth, though investors remain wary of margin pressures and guidance that falls short of consensus expectations.
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